Morning journal and courier., 1887-01-28
A CHANCE FOR THE CITY.

what the HOusatonic Valley Railroad
Company Offers to the City Regarding
the Little Derby.
The following proposition was submitted
to Mayor York as the representative of the
city yesterday forenoon:
NEW HAVEN, Conn Jan. 81, 1887
To His Honor Samuel A. York, Mayor of
the City of New Haven:
Dear SiR-As attorney tor the Housatonlc
Valley railroad company, corporation or
panized to build railroad from point on
the Derby railroad in Birmingham to point
on the New York and New England railroad
near Sandy Hook, which is virtually an ex-
tension of the Derby railroad line, am
authorized to submit to your consideration
as the executive officer of the city Of New
Haven the following proposition for the Pur-
chase of the entire interest of the city of New
Haven in the New Haven and Derby railroad
company:
The Housatonic Valley railroad company
will pay the city Of New Haven for its stock
in the New Haven and Derby railroad COM
pany, and for its claim as creditor against
that company, $4,000.
The Rousatonic Valley railroad company
will also, as q part of this transaction, give
satisfactory guaranty that in May, 1888,
when the first mortgage bonds of the Derby
railroad become due, it will pay the $500, 200
of FIRST mortgage bonds and raise that mort
gage. and thus allow the city's guaranty
mortgage, which is now second, to become
first mortgage upon all the present or future
property of the read.
The Housatonic Valley railroad company
will also agree to furnish proper guaranty in
such form as may seem best to the city gov
eminent, that the road between Birmingham
and Sandy Hook as projected shall be built
Immediately. Permit me also to add that If
there is any desire on the part of the city
government to have an assurance of a sub
stantial nature that the Derby railroad com
uanv under the change of ownership which
this proposition contemplates will be run as
completely in harmony with the commercial
and financial interests of the city of New Ha-
ven as it has been in the past we are ready
to give such assurance. May beg you to
bring this proposal to the attention of the
proper departments of the city government
1t as early date as agrees with your con-
yeniencef I have the honor to be
Yours very truly,
MORRIS f. TYLER,
OF counsel for the Housatonic Valley rail
road company.
The proposition was foreshadowed at the
meeting the evening previous of the city's
finance committee when the Mayor informed
the committee that he had been approached
by a number of gentlemen, who were pre-
pared to purchase or make some arrangement
with the city for its interest in the little
II Il.
win, jr, J. D. Dewell, 81. II. Bunnell and
Herrick P. Frost said they represented the
Housatonic Valley railroad, and if an equit-
able arrangement could be made, they were
prepared to make an offer, which offer was
made yesterday in full as in the letter above
It is subsequently, proposition from the re-
Gently formed Housatonic Valley railroad
company to buy the interest of the city in
the little Derby. The city's new finance
board ia not yet organized and in working
order. hence no action was taken and the
matter was merely informally discussed. As
the public know, the Housatonic Valley rail
road company is backed by New Haven cap
italists. The company offers the city $175,-
900 cash for it's stock in the Derby, which, as
the case now stands, is considered fair pur-
chasing price. The Housatonic company
also says it will in May, 1888, when the first
mortgage bonds become due, pay the $780,
900 Of the bonds and thus allow the city's
guaranty mortgage to become q first mort
gage ON the roads property. Some of the
advantages to the city of such sale as set
forth by the hackers Of the project are that
quite large section of country now practi-
caIIy shut to New Haven trade will be opened
TO IL; that New Haven will get what Bridge
port now gets from that section,
or good share Of it; that
the New York and New England
road with the whole northwestern part of
the State. Then, too, the city 10 getting nolh-
ing now from its money locked up in the
Derby road investment. Then New Haven
with it's water front and harbor will gain
largely in the future by the change and will
become a supply station and feeder to that
mart Of the State from which it now gains
but little Then if the change is made the
locating of the Derby depot and tracks will
probably be changed and a fine new depot
built in place of the present little one.